Innocent, www.innocentinc.com – the rapid growth via acquisition-focused emergent gold mining firm targeting upgradeable resource sites in Ecuador, announced acquisition today of the currently-in-production Murciealagos Vizcaya and Lilly Rai mining concessions by Global Finishing Ecuador (GFE – of which INCT is majority owner via 51% acquisition of Global Finishing Incorporated).
Located in Ecuador’s historically proven Zaruma-Portovelo Mining District, within El Oro Province, the site is strategically ideal given the Company’s other concerns in the area, and consists of substantial acreage containing some 145k ounces of inferred gold (Independent Geological Report released Aug. 16 this year).
However, this preliminary analysis is based only upon a mining depth of 200 meters. The report itself indicates that multiple gold veins within the property may extend down to 2k+ kilometers, thus the actual value of the resources may be substantially larger.
A reported $1.2M total ($250k down, paid at signing and 950k every six months for five months thereafter) payment will be made under the terms of the purchase agreement, for which Innocent has agreed to secure funding.
VP, South America Operations for INCT, Richard Diotte, detailed how this acquisition is in full accord with the overall business strategy of obtaining and developing upgradeable clusters of in-production/near-production sites which are currently undervalued and not producing at their full potential output capacity.
Diotte explained the plan to rapidly implement aggressive new production initiatives as being centered on the opening up of an entire network of new work fronts, as well as increasing the depth. Diotte also characterized the acquisition as particularly undervalued, representing a massive return opportunity for the Company’s investors.
Previous owners of the site merely employed primitive, small-scale artisan mining methods. The introduction of a mechanized infrastructure with skilled labor is expected to lead to radically improved resource output.